Sen. Terry Link
Filed: 3/10/2009
 
 

 




 

 		












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AMENDMENT TO SENATE BILL 252 




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    AMENDMENT NO. ______. Amend Senate Bill 252  by replacing 
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everything after the enacting clause with the following:

 
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    "Section 5. The High Risk Home Loan Act is amended by 
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changing Section 15 as follows:
 



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    (815 ILCS 137/15)



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    Sec. 15. Ability to repay. A creditor or broker shall not 
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transfer, deal
in, offer,
or
make a high risk home loan if the

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the creditor or broker does not believe at the
time the loan
is

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consummated that the borrower will be able to make the 
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scheduled
payments to repay the obligation based upon a 
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consideration of his or her
current and
expected income, 
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current obligations, employment status, and other financial

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resources (other than the borrower's equity in the dwelling 
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that secures
repayment of the loan). A borrower shall be 
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presumed to be able to repay the
loan if, at the time the loan 
 


 






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is consummated, or at the time of the first rate
adjustment, in 
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the case of a lower introductory interest rate, the borrower's

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scheduled monthly payments on the loan (including principal, 
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interest, taxes,
insurance, and assessments), combined with 
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the scheduled payments for all
other disclosed debts, do not 
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exceed 50% of the borrower's monthly gross
income.
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(Source: P.A. 93-561, eff. 1-1-04.)".